ADB recapitalization to stop merger with NIB?

It is emerging that the proposed merger between ADB and NIB may not come off following a recapitalization plan outlined by ADB.

The Finance Minister, Ken Ofori Atta has stated of plans to establish a National Development Bank with the merger.

The latest comes with about three weeks to the deadline for the minimum capital requirement.

Citi Business News understands that the latest move will see a recapitalisation of ADB Bank.

This is to increase its capital base and enable to continue operating within the banking industry.

As at September this year, ADB’s Stated Capital stood at ¢275,000,000.

This means that the bank needs about ¢125,000,000 to meet the new capital level.

This is expected to be brought in by major shareholders, i.e. Bank of Ghana and the Government of Ghana.

But everything will be put forward for approval by all shareholders at an Annual General Meeting scheduled to come off later this month.

If successful, ADB is expected to be strong in offering financial assistance not only to players within the agric space, but perhaps other key sectors of the economy.

The shareholders of adb are; Financial Investment Trust -60.50%; Government of Ghana – 32.30% and Retail investors and ADB staff – 7.20%.

source: citibusinessnews